The Azerbaijani government passes off foreign companies that carry out repair and construction work in the country, mainly at the expense of budget funds, as “investors,” executive secretary of the REAL party, economist Natig Jafarli said. Noting that over six months of this year, Turkish companies completed repair and construction work worth $543 million in Azerbaijan, the economist claimed that foreign companies are aimed precisely at such projects in which they don’t need to invest their funds. In his opinion, foreign companies lined up for funds allocated from the state budget of Azerbaijan for restoration of the territories liberated from the occupation, but these are not investors, but businessmen who come to work.
We are not going to analyze the reasons why the REAL representative could have chosen Turkey as an example. We will highlight only two points. Firstly, perhaps this is the position of REAL, and secondly, the representatives of this party had no time to properly assess the realities that emerged after the 44-day Second Karabakh War.
But let's not talk about it. As for the Azerbaijani government’s passing off foreign companies carrying out repair and construction work as "investors", first of all, the economist did not provide any specific facts in support of his statement. To clarify whether this statement is true, it is necessary to get to know the projects currently being implemented in Karabakh, including the speeches and statements of the country's leadership and members of the government.
In January this year, at a meeting dedicated to the results of 2020, President Ilham Aliyev, speaking about the potential of the liberated territories in the field of renewable energy, noted the existing interest in this area: “With this in mind, we must attract foreign investors to the liberated lands. There are many large transnational companies interested in investing in this area now. About 10 companies are interested, and the main focus for them should be liberated lands.”
In February this year, at a press conference for representatives of local and foreign media, President of Azerbaijan Ilham Aliyev once again spoke about the prospects for attracting investments in the territories liberated from occupation. The head of state noted that the liberated territories have good opportunities for the development of renewable energy:
“Kalbajar-Lachin is a wind zone, because there are very strong winds. Zangilan-Jabrayil is a solar zone because the amount of sunshine is very large every year. Besides, the quality of sunshine is also conducive, so to speak. So instructions have already been given to relevant Azerbaijani agencies to work out these issues together with foreign partners. So this has great prospects. Plus, as I said, we have declared Karabakh a zone of “green energy” and, of course, we are waiting for investors,” he said.
“Of course, the state will take over the entire infrastructure sector and plus a large part of the housing stock. But private companies will also be able to make investments there in accordance with agreed projects, in compliance with all the norms of urban planning and environment. This is how we see the approach,” he added.
"The measures to be taken by the state to restore and develop the territories liberated from the occupation, and the economic potential of these regions will create the basis for attracting new local and foreign investments into the country, especially in the non-oil sector," Minister of Economy Mikayil Jabbarov said at a meeting dedicated to the results of 2020. The minister noted that in order to ensure an integrated approach to the restoration and development of the liberated territories, it is planned to carry out activities in four stages. At the initial stage, it includes the solution of management and security issues, infrastructure, and at the subsequent stage - the functioning of social services, restructuring and development of the economy.
The clarifications we have made in connection with the projects currently being implemented in Karabakh also show that foreign companies participating in these projects are not presented as investors. For example, Turkish companies are involved in the construction of roads in the liberated territories, in particular, highways from Fuzuli to Shusha and from Goygol to Kalbajar. In this regard, the official statements emphasize the participation of Turkish companies in the investment program for the restoration of Karabakh, implemented through the state line.
In addition, Turkish, Chinese, Italian and Israeli companies were involved in the implementation of the Smart Village pilot project covering the 1st, 2nd and 3rd villages of Zangilan. On April 27, 2021, President of Azerbaijan Ilham Aliyev held a video conversation with representatives of these companies. It becomes clear from the conversation that the companies will apply the most modern technologies in the Agali village. Neither at the presentation of projects, nor in a conversation with company representatives, was it mentioned that they are investors.
From our research and the speeches presented, it can be seen that foreign companies involved in projects in Karabakh are not represented as investors. Companies were involved in this work due to their extensive experience and high qualifications in their field. On the other hand, the Azerbaijani side, having built infrastructure in Karabakh, intends to create a basis for investment. Projects currently being implemented for the construction of roads, energy infrastructure, airports and others are aimed at precisely this. Although Karabakh has great economic potential, naturally, without infrastructure it is impossible to attract investments to these territories. In addition, initially, companies are encouraged to invest in the potential of Karabakh in the field of renewable energy. In all likelihood, other areas will also be available to investors after providing security, as mentioned above. Naturally, the presence of a large number of mines on the territory of Karabakh is also one of the factors hindering investments.
